FIIs building long positions: HDFC Securities

Markets began the week on a positive note. There was however a build up of shorts as Nifty Futures open interest (OI) increased by 3,402 contracts and the premium on Nifty August future narrowed to 14.3 pts.

FIIs were building longs as they were net buyers to the tune of Rs 381 crore in the index future segment and their OI rose. Nifty implied volatility (IV) dipped to 15.4% while Nifty OI put-call ratio (PCR) further slid to 1.22.

In the index option segment, maximum OI continues to be seen in the 5500 calls and 5000 puts indicating that this broadly remains the expected trading range.

Unwinding was seen in the 5200 calls and 4800 puts. Technically, with the Nifty moving above the previous short term highs of 5258, the underlying short term trend has turned up. Immediate upside targets for the Nifty are now at the next intermediate highs of 5349. Downside supports are at 5252.